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The Loanable Funds Framework Is Easier to Use When Analyzing

Question 47

Multiple Choice

The loanable funds framework is easier to use when analyzing the effects of changes in ________,while the liquidity preference framework provides a simpler analysis of the effects from changes in income,the price level,and the supply of ________.


A) expected inflation; bonds
B) expected inflation; money
C) government budget deficits; bonds
D) the supply of money; bonds

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